Do you wonder why Municipalities are so short of money for infrastructure spending, like in the neighbourhood of at least 6 BILLION dollars?
Can you put your finger on the reason we are up to our proverbial ass and drowning in Government created debt to the tune of 270 BILLION dollars and counting?
Many other questions could be asked WHY we are bordering on a Provincial bankruptcy, but for now let’s focus on just one man and his actions that were “directed” by ex Premier Dalton McGuinty to hand out millions of tax payers dollars to appease foreign interests and less than financially strong contract holders of the Gas Plant build that was cancelled to buy seats for the 2010 Provincial election.
To conclude that these “hand outs” were morally, let alone financially irresponsible would be an understatement!
Former Director, Lions Gate Entertainment 06/27/2013
In my last Huffington Post article, recall that Rob Prichard and his Toronto law firm Torys were retained by the Ontario Ministry of Energy, (effectively Dalton McGuinty) to pay off and make the U.S. hedge fund EIG quietly go away without further embarrassing the McGuinty government with EIG’s messy and public legal action against the McGuinty government.
As previously discussed, EIG had launched a $300 million legal action in Ontario against the Ontario Ministry of Energy and the OPA, over their alleged conspiracy with Eastern Power and its operating company Greenfield (collectively, Eastern Power) to breach the lending agreement that Eastern Power had with EIG.
EIG had provided a $263 million credit facility to Eastern Power in order to finance Eastern Power’s development and construction of a proposed Mississauga gas plant.
As previously reported, the McGuinty government cancelled this gas plant, within six months of the execution of this lending agreement — but not before approximately $59 million had been drawn down by Eastern Power from this lending facility.
Notwithstanding that the Ontario government was neither a party to this lending agreement or a guarantor of the loan, the Ontario government provided Prichard with a mandate to pay off EIG the outrageous sum of $146.5 million, which Prichard forked over in order to prevent any further litigation with EIG, with respect to this loan.
In my previous article, I argued that the McGuinty government did have a choice to fight this specious legal action and potentially save the taxpayers all or a substantial chunk of those $146.5 million dollars, but the McGuinty government chose instead to pay these greedy hedge fund dudes off, so as to protect the McGuinty government and its brand — at the clear expense of the Ontario taxpayers.
Now, ironically, the Wynne government has decided to cut $150 million in funding to the city of Toronto, over the next three years, according to a recent Globe and Mail article.
These funds had been promised to the city of Toronto by the former Liberal Finance Minister Dwight Duncan as compensation for the city of Toronto assuming some of the public housing costs, that had been downloaded on the city of Toronto by the province.
So the Liberal government has no problem cutting a cheque unnecessarily for $146.5 million to a greedy American hedge fund, as hush money. Similarly, the Wynne government has no problem cutting the city of Toronto off from $150 million that the city needs to house its homeless and disadvantaged.
Well, I am glad the Wynne government has its priorities straight.
This Liberal government appears to favour greedy US hedge funds, well-connected gas plant owners and its friends on Bay Street, to Toronto’s homeless and working poor.
In the context of the Liberal government blowing millions upon millions of dollars to hush up the Mississauga gas plant, the story just gets even worse.
Recall, Rob Prichard and his Tory law firm associates were paid by the McGuinty government the very generous sum of $350,000 in fees for two weeks of work.
It should be noted Prichard’s fees during those two weeks also included his work in settling the strained relationship with Eastern Power.
Or more accurately, Prichard’s fees were earned for paying off the costs incurred by Eastern Power in reliance of the gas supply contract it had with the McGuinty government.
And also for paying off costs that Eastern Power had incurred for matters quite unrelated to the subject contract with the province.
In addition, Prichard ‘s fees were earned from also paying off the additional relocation and financing costs that Eastern Power incurred in building a new alternate gas plant in more gas plant-friendly Lambton.
For simplicity, I am estimating that the McGuinty government once again chose to protect its image and its Liberal government at the expense of the taxpayers, to the tune of about $63.8 million dollars.
Let me elaborate.